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1. Movie theatre popcorn
At the grocery store, microwave popcorn runs about $3 per box, and each box includes three 3.5 ounce bags. So why on earth would consumers even consider paying a whopping $6 for a single medium-sized bag of popcorn in the movie theatre? No one knows exactly why - but for some bizarre reason, movie-goers continue to drain their wallets to crunch on a bag full of those greasy little nuggets during their favorite film.
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I'm sure a lot of people would just bring their own, but that's not allowed. Same thought applies to buying drinks at the bar - the trendier the place, the more you pay for the same drink. Case in point: a four-pack of Smirnoff Ice (my poison of choice) goes for $11 in the liquor store, or <$3/bottle, which right there is probably 200-250% over cost with gov't markup and taxes. Now you go to some place like the Red Room, and they want $7.50 for that same bottle. Meantime, a place like Envy (formerly Cheers), they're $4.75. Not as crazy a markup as popcorn, but same idea: when you can't bring your own, they can shaft you for whatever they want.
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2. Greeting cards
Since when does a folded-up piece of paper cost $2.99? Since someone slaps a precious kitty picture and a cleverly written message on it and then stamps the back of it with a well-known logo. That's right - we're talking about those pricey greeting cards. Many consumers spend hours poring over the neatly arranged stacks in the greeting card aisle, searching for the perfect message for their sister's birthday, their parent's anniversary or "Just Because."
The average greeting card costs between $2 and $4, and we consumers don't seem to think twice about paying that precipitous price. The markup is between 100 and 200 per cent - which is not quite as shocking as movie theatre popcorn, but it adds up quickly. When you consider how many of those paper jewels you buy each year, it's enough to send you running for the construction paper and markers. After all, it only costs a few cents to create a home-made card. (Do you know how much you're really spending? Find out in What's Eating Away Your Money?)
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You're largely paying for licensing fees here... whoever came up with the slogan gets a cut under copyright law. If there's a picture, it probably has licensing fees attached as well. And sure you can print your own at home, but have you seen most home-made cards? They LOOK hokey and cheap, especially printed on standard inkjet printer. price out cardstock before making this comparison (and this isn't even considering the cost of printer ink!)
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4. Bottled water
You've probably heard that "Evian" is simply "naïve" spelled backwards. OK, so the well-known company probably did not choose their name for that reason - but many people believe that consumers who buy bottled water are certainly naïve. After all, water is one of the most abundant resources in the world and is available for free from countless water fountains and sinks across the nation. Yet, many consumers are still willing to pay $3 a bottle of it.
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Again, paying for convenience. No different than going to 7-Eleven and paying $8 for a little bottle of a dozen Tylenol because you REALLY NEED them at 4am... rather than waiting until morning and getting a bottle of 48 for $6.
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5. Printer ink
You may be able to buy a surprisingly affordable printer at your local office supply store, but don't start celebrating just yet. The printer companies make their biggest bucks on ink.
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As much as people complain about this, consider that if they charged what ink is REALLY worth, they'd have to make up the difference by charging three times as much for the printer itself. The ink costs are basically subsidizing the printer... which as a consumer, is an attractive idea, because I can just buy a new printer and get newer technology for the same think it would cost me to re-stock my old one.
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6. Brand-name fashions
How much did you pay for those True Religion jeans, that Burberry scarf and those towering Louboutin stilettos? Probably a small fortune. But it was worth every penny, right? Not so much. When it comes to designer clothes, it's pretty obvious that you are paying for the label.
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True for SOME brands... I paid over $250 for a pair of Red Wing shoes for work some 12 years ago; I still have them, and they're still in great condition. Sometimes you DO get what you pay for with name brands... some times not.
Of course, let's not forget the insane dollars people drop for ricer toys for their cars... add-ons that amount to little more than bling or maginal performance gains that they'll never get to use (legally) on the street...